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Bakers Pride Corporation is considering purchasing one of two new mixing machines. Either machine would make it possible for the company to bid on jobs
Bakers Pride Corporation is considering purchasing one of two new mixing machines. Either machine would make it possible for the company to bid on jobs that it currently isn't equipped to do. Estimates regarding each machine are provided below. Dough-Matic Dough-Matic Model 100 Model 200 Original Cost $99,000 $149,000 Estimated Useful Life 8 years 8 years Annual Cash Flows $25,000 $40,000 Annual cash outflow $ 5,000 $10,000 Instructions Calculate the net present value and profitability index of each machine
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